Last Updated on January 3, 2025 by The Health Master
Pharma and Cosmetics
In a move aimed at revitalizing crucial sectors like pharma and cosmetics, the Indian government has reinstated Standard Input-Output Norms (SION) and Adhoc norms for menthol imports under the Advance Authorisation (AA) and Duty-Free Import Authorization (DFIA) schemes.
This significant decision, announced by the Directorate General of Foreign Trade (DGFT) via a public notice, will directly benefit pharma and cosmetics manufacturers by streamlining the import of this essential ingredient.
Menthol Import Norms Restored
The reinstated norms, applicable to both Natural Menthol (ITC(HS) Code: 29061110) and Other Menthol (ITC(HS) Code: 29061190), were previously suspended on March 7, 2024.
This reversal is expected to provide much-needed relief to industries heavily reliant on menthol imports.
Key Beneficiaries: Pharma and Cosmetics
- Pharmaceutical Industry: Menthol plays a crucial role in the production of various pharmaceuticals, including pain relievers, balms, and cooling agents.
- Cosmetics Industry: This sector heavily utilizes menthol in the formulation of products like toothpaste, mouthwash, and a wide range of skincare items.
Supporting Industry Growth
Santos Kumar Sarangi, Director General of Foreign Trade, emphasized the government’s commitment to supporting industry growth.
He stated, “The restoration of menthol import norms reflects our dedication to facilitating trade and ensuring industries have access to essential raw materials at competitive prices.”
Regional Authorities Empowered
Regional Authorities (RAs) have been granted the authority to resume the issuance and fixation of Advance Authorisations and Adhoc norms as per the guidelines outlined in the Handbook of Procedures (HBP) and the Foreign Trade Policy (FTP) 2023.
Policy Alignment
This policy change aligns perfectly with Supplementary Note No. 1 of Chapter 29 in the ITC(HS) 2022 Schedule-I (Import Policy).
Benefits of Restored Norms
- Stable Supply Chain: Ensures a consistent and reliable supply of menthol, crucial for uninterrupted production.
- Operational Efficiency: Streamlines import processes, reducing delays and associated costs.
- Cost-Effectiveness: Facilitates access to menthol at competitive prices, improving overall profitability.
Meeting Industry Needs and Global Standards
By reinstating these import norms, India not only addresses the immediate needs of the pharma and cosmetics sectors but also demonstrates its commitment to aligning trade policies with international standards.
Understanding AA and DFIA Schemes
- Advance Authorisation (AA): Allows duty-free import of inputs physically incorporated into export products.
- Duty-Free Import Authorisation (DFIA): Permits duty-free import of inputs, packaging materials, fuel, oil, and catalysts consumed in the production of export goods.
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What is the significance of reinstating menthol import norms?
This move aims to support key industries like pharma and cosmetics by ensuring a stable and cost-effective supply of a crucial ingredient.
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How will this benefit businesses?
Streamlined imports will improve operational efficiency, reduce costs, and enhance overall competitiveness.
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Which industries will benefit the most?
The pharma and cosmetics industries are expected to experience the most significant gains.
Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.
Disclaimer: This article is for informational purposes only and should not be considered legal or financial advice.
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